Earning extra cryptocurrency by putting your assets to work—who wouldn’t want that? Bitvavo makes this possible through its staking program. In this guide, we’ll explore how staking works on Bitvavo, the risks involved, eligible coins, expected returns, and alternatives.
What Is Crypto Staking?
Before diving into Bitvavo’s staking process, let’s clarify what staking entails.
At its core, staking involves holding a specific cryptocurrency to support a blockchain network or platform. In return, you earn rewards for contributing to network security or liquidity. There are two primary staking methods:
1. Off-Chain Staking
- Also called lending-based staking.
- Platforms like Bitvavo pool your assets to lend to others, earning interest. You receive a portion of this interest as a reward.
- Requires no technical knowledge.
2. On-Chain Staking
- Involves participating in Proof-of-Stake (PoS) blockchains (e.g., Ethereum 2.0, Cardano).
- Validators (stakers) verify transactions; rewards are protocol-defined.
- Higher technical barriers but often more decentralized.
👉 Discover top PoS blockchains for staking
How to Stake Crypto on Bitvavo
Bitvavo simplifies staking:
Create an Account
- Sign up on Bitvavo (if you don’t have an account).
Deposit Crypto
- Transfer supported coins (e.g., BTC, ETH, ADA) to your Bitvavo wallet.
Enable Staking
- Navigate to Account Settings > Staking and toggle it on.
- Rewards accrue automatically.
Monitor Rewards
- Check the Staking Dashboard for real-time earnings and annual yield estimates.
- Payouts occur weekly.
Risks of Staking on Bitvavo
While staking is low-effort, consider these risks:
- Platform Risk: Bitvavo could be hacked (though cold storage mitigates this).
- Slashing: On-chain staking may penalize validators for downtime (Bitvavo handles this).
- Price Volatility: Rewards may not offset price drops (e.g., ETH falling while staked).
👉 Secure your crypto with hardware wallets
Supported Coins and Expected Returns
Bitvavo supports staking for 20+ coins, including:
| Coin | Symbol | Estimated APY |
|------------|--------|-------------|
| Bitcoin | BTC | 1–2% |
| Ethereum | ETH | 3–5% |
| Cardano | ADA | 4–6% |
| Tether | USDT | 5–8% |
Tip: Stablecoins (e.g., USDT) offer higher APY but lack price appreciation potential.
Is Bitvavo Staking Right for You?
Pros
✅ Passive income with minimal effort.
✅ No technical expertise needed.
✅ Flexible: Start/stop anytime.
Cons
❌ Lower APY vs. competitors like Coinbase.
❌ Platform dependency (non-custodial wallets are safer).
Bitvavo Staking Alternatives
1. Coinbase
- Higher APY (e.g., 6% for ETH).
- Higher trading fees.
2. BlockFi
- Focused on lending-based staking.
- Limited coin selection.
Top 3 Tips for Staking on Bitvavo
- Enable 2FA for account security.
- Diversify across coins to balance risk/reward.
- Compare APYs with other platforms.
FAQ
How often are staking rewards paid out?
Rewards are distributed weekly.
Can I unstake anytime?
Yes—assets remain liquid.
Is staking taxable?
Yes, rewards are taxable income in most jurisdictions.
Conclusion
Bitvavo’s staking program offers an easy entry into earning passive crypto income. While APYs are modest, the platform’s simplicity makes it ideal for beginners. For higher returns, explore alternatives like Coinbase or decentralized protocols.
Ready to start staking? 👉 Sign up with Bitvavo